IVAs could help the rising number of Britons in debt
More than one-in-five Britons over the age of 50 have seen their debt increase in the last twelve months, claims moneysupermarket.com, while an individual voluntary arrangement (IVA) could be the answer for many of them.
Research by the price comparison site found that 22 per cent of consumers in this age bracket have more debt than they did one year ago, with five per cent describing the rise as ‘a lot’.
IVAs seek to reduce debt by freezing interest rates and putting together a manageable repayment structure so that a debtor can be debt-free as soon as possible.
Those over 50 may be worried about entering retirement with significant debts to their name so may want to seek IVA advice immediately.
Tim Moss, head of loans and debt at moneysupermarket.com, said: “Anyone starting to worry about their financial situation shouldn’t bury their head in the quick sand of debt – problems are easier to tackle when addressed early.”
The study also revealed that 15 per cent of borrowing Britons believe debt will always be a part of their life and that 48 per cent of those who have seen their debt increase recently go further into the red just to pay the bills.
By Ashley Littley
October’s Credit Action report revealed the Citizen’s Advice Bureau currently deal with more than 9,000 new cases of debt every day.
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